subject: Becoming An Accidental Millionaire [print this page] For those of us who are small business owners often acquire properties as a location to do commerce. Then we hold it for years, doing business and not worrying much about what may be happening to the value of the property.
Consider buying a building where things are beginning to show signs of improvement in an existing community or city center.
As an example, I know of a family retail business that has been doing business in the same location for almost fifty years.
Its town location was just about abandoned by other businesses when shopping malls and big box stores almost turned the downtown areas a thing of the past. When the store considered moving to the mall the rental fee seemed way too expensive and the customer mix seemed wrong for their needs. Since the store was not very location sensitive they stayed where they were and purchased two other buildings adjacent to their original property.
To my amazement the quaint Victorian store buildings of the main drag eventually made a big comeback, housing restaurants, professional offices, hotels, apartment buildings, family homes and other retail shops. This kind of rebirth is not really that abnormal. If they wanted to sell either the property or the business or both there would be plenty of interested buyers, at least a number of of them investors seeking rental income.
The real estate purchase they made was secondary to the retail business, but it was still a great investment!
You have to have a physical location in order to do business, but also make an effort to make the real estate pay off. In a number of cases the property just might eventually actually be worth a good bit more than the business. More than a few property owners have made this pleasant discovery.
So keep an eye out for the direction of development in your area. Take notice of under used or abandoned property that might be reused to serve your business needs and your investment needs. Your payoff could be a lot better if you can educate yourself to recognize unperceived value in real estate in your area. Donald Trump always says, "Make your money on the front end," when you buy smart and then sell or develop at the right time for a premium. Buy low, sell high. It's the ideal business model to emulate.
